On
January 31, 2003, I wrote to inform you of an upcoming change in
the University’s current service dates and pay date calendar schedule.
I write today to inform you of a change to that previously announced
schedule. The pay date change that was to occur on August 16, 2003
will now take place on September 16, 2003.

Twelve-Month
Contracts: Based on advice from our Legal Counsel, continuing twelve-month employees with
a contract end date of August 31, 2003 will continue under their
current 2002-2003 contracts. On September 1, 2003, a full month’s
check will be issued to fulfill the 2002-2003 contract. New contracts
will be issued effective September 1, 2003 through August 15, 2004
with the new pay date on September 16, 2003 instead of August 16,
2003. The September 16th check will be for 15 days, covering the period September 1 through September
15.

Nine-Month
Contracts: Continuing nine-month faculty paid over 12 months will not be impacted by the
change in contract dates. They will be issued new contracts beginning
August 16, 2003 through August 15, 2004 (for service provided from
August 16, 2003 through May 15, 2004). A September 1, 2003 check
will represent the final installment of their 2002-2003 contract
with the September 16, 2003 check representing a full one-twelfth
payment for the first month of their new contract.

University
policy allows for up to two months of summer salary. Any summer appointment
extending beyond two months requires prior approval by the Chancellor
or her designee. Currently the Chancellor has delegated approval
to the deans. For this year only, what has been a third month of
summer salary for some faculty and graduate assistants will be shortened
by 5 days and ending on August 15 instead of August 20.

Ten-Month
Contracts: Appointments for continuing ten-month academic employees paid over twelve months
will vary based on their period of service. The September 1, 2003
check will represent the final installment of their 2002-2003 contract.
The new pay date for these employees also will move to the 16th of each month beginning September 16, 2003.

New
Hires: All new academic hires for the new contract year should be appointed on the
new contract dates from August 16, 2003 through August 15, 2004.

The
revised FAQ document should address any questions you may have regarding
this latest change. The FAQ document follows this memo; scroll down
to view it.

*Deductions taken will be for coverage during the entire month of September.
More specific questions should be sent to the Payroll Office at 996-1922.

Question: What
is changing and when will the change occur?Answer: The service calendar for 9-month employees
paid monthly on a 12-month basis will be changing in August 2003. For 12-month
employees the change will not occur until September 2003. The pay calendar
for all UIC academic employees paid monthly will be changing in September
2003.

Question:
What is a service calendar, and how is it different from a pay calendar?Answer: Service calendar refers to the standard
periods for service and non-service during an appointment year. Pay calendar
refers to the standard pay periods and the date pay is distributed to employees.

Question:
What are common service dates and how were the dates determined?

Answer: A
common service date is the move to one set of dates for academic
appointments across all campuses. The primary factor determining
the new dates was better alignment of the academic service calendar
with the campus instructional calendar. In addition, joint appointments
between campuses, transferring between campuses and other coordination
issues will be simplified. The common set of service dates chosen
begin August 16 with service required until May 15 for 9 months service.
Service from August 16 to December 31 will correspond to the fall
semester. The service period corresponding to the second semester
will be January 1 to May 15. Continuing 12-month academic employees
will begin their new contracts on September 1, 2003 with an end date
of August 15, 2004. Subsequent contracts for 12-month employees will
follow the common service dates of August 16 through August 15 schedule.

Question: What
is a common pay date and why is it changing?Answer: A common pay date is the move to one
common date for paying all academics across all three campuses. This change
will affect only employees who are paid monthly. The common pay date will
be the 16th of each month and the common pay period will be the 16th of
the current month to 15th of the following month.

While
looking at the possibility of a common service date, concurrent investigation
was conducted to explore the opportunity to adopt a single academic
pay date. The decision to do so was justified by the changing of
the service dates. Alignment of the common service date and pay date
brought the University to a single common calendar. Additionally,
this decision allows for administrative cost savings from the reduced
number of pay dates and the simplification of both the set-up and
maintenance of the payroll system. This addresses long-standing inefficiencies
generated by our current practice of running multiple payrolls across
the campuses.

Question: Who
is impacted?Answer: Academic employees paid monthly will
be affected. Employees paid bi-weekly will not be affected.

Question:
How does moving to a common pay date impact me as a monthly paid
employee at UIC?Answer: Continuing 12-month appointments: Continuing
twelve-month employees with a contract end date of August 31, 2003 will
continue under their current 2002-2003 contracts. On September 1, 2003,
a full month’s check will be issued to fulfill the 2002-2003 contract.
New contracts will be issued effective September 1, 2003 through August
15, 2004 with the new pay date on September 16, 2003 instead of August
16, 2003. The September 16th check will be for 15 days, covering the period
September 1 through September 15.

Continuing
9-Month Service Paid over 12 Months appointments: Continuing nine-month faculty paid over 12 months will not be impacted by the
change in contract dates. They will be issued new contracts beginning
August 16, 2003 through August 15, 2004 (for service provided from
August 16, 2003 through May 15, 2004). A September 1, 2003 check
will represent the final installment of their 2002-2003 contract
with the September 16, 2003 check representing a full one-twelfth
payment for the first month of their new contract.

Continuing
10-month Service Paid over 12 Months appointments: Appointments for continuing ten-month academic employees paid over twelve months
will vary based on their period of service. The September 1, 2003
check will represent the final installment of their 2002-2003 contract.
The new pay date for these employees also will move to the 16th
of each month beginning September 16, 2003.

New
Hires: All new academic hires, if hired at the beginning of the new appointment year,
will begin August 16 on the new calendars and no change over will
be needed.

Question:
How will summer 2003 appointments for 9-month faculty be handled? Answer: University policy allows for up to
two months of summer salary. What has been a third month of summer salary
for some faculty and graduate assistants, will be, for this year only,
shortened by 5 days, ending on August 15 instead of August 20. Any summer
appointment extending beyond two months requires prior approval by the
Chancellor or her designee.

Question: Why
are these changes being made?Answer: These changes align the service and
pay calendars on the three University of Illinois campuses and will improve
coordination and efficiency across the University. Additional benefits
include: 1) simplify academic appointments by having one instead of three
service calendars; 2) the new service calendar will be more in line with
the instructional calendar for the campus; 3) a better correlation between
the start dates of faculty and graduate assistants in relation to the instructional
calendar; and 4) reduce administrative costs incurred in running and reconciling
multiple payrolls.

Question: Will
I need to change my health insurance, direct deposit, or any other
HR related function as a result of this change? Answer: No, you will not need to make any changes
unless you wish to make one as part of the planning for the transition
year such as, changing your tax withholding (W4).

Question: Why
do the examples of 2003 W2s for academics paid monthly at UIC look
as if we will be paid more during the transition year?

Answer: First,
several years ago UIC changed from quarters to semesters but made
no corresponding change in the dates for academic appointments. For
example, currently 9/12 appointments provide service August 21 -
May 20 but the pay calendar is September 1 – August 31, meaning faculty
are providing service for a time period that is different from their
contract dates. Changing service to August 16 – May 15 and pay to
the 16th of each month eliminates this issue at the time of the transition.
To accomplish the transition, 9/12 appointments will be paid out
on September 1 for the remainder of the 2002-2003 current year of
service.

Secondly,
the difference at UIC is that for both 9/12 appointments and appointments
on a 12-month service basis, the current pay calendar is Sept 1-
Aug 31 with pay dates on the 1st of each month. Because the current
pay for all of December occurs in January, each year one month’s
earnings is shifted to the next tax year. With the earlier pay date
one-half of December earnings will be paid on Dec. 16 in the current
tax year.

The
result will be a one-time apparent increase in yearly income equal
to one month for continuing 9/12 employees and one-half month for
12-month service employees. Whether the W2 change represents a real
increase in take-home pay or is a cash flow artifact, employees will
want to consider any possible tax implications and plan accordingly.
The charts illustrating monthly payments during 2003 shows the W2
results.

Question: When
and where can I find other details of how the changes will affect
me?Answer: More information on the changes and
on how you as an individual may be affected will be made available on an
ongoing basis over the coming months at this web site. For many employees,
the changes will be minor. For budgeting purposes, employees should anticipate
a change in cash flow for September and schedule bill payments as needed.
Others may anticipate tax or other impacts from the extra paycheck during
the tax year and will want to plan accordingly.

UIC
– What to Plan for – W2s

Academic
Employees on 9/12 Appointments

Employees
can anticipate, and plan for, the difference the changes may make
on 2003 taxable income (W2s).

For
illustration, taxable income of $1,000 per month or $12,000 per
year is shown.

If
Current Pay Schedule were to Continue for 2003

Payment
for December, 2002 $1000 Paid on January 1, 2003

Payment
for January, 2003 $1000 Paid on February 1, 2003

Payment
for February, 2003 $1000 Paid on March 1, 2003

Payment
for March, 2003 $1000 Paid on April 1, 2003

Payment
for April, 2003 $1000 Paid on May 1, 2003

Payment
for May, 2003 $1000 Paid on June 1, 2003

Payment
for June, 2003 $1000 Paid on July 1, 2003

Payment
for July, 2003 $1000 Paid on August 1, 2003

Payment
for August, 2003 $1000 Paid on September 1, 2003

Payment
for September, 2003 $1000 Paid on October 1, 2003

Payment
for October, 2003 $1000 Paid on November 1, 2003

Payment
for November, 2003 $1000 Paid on December 1, 2003

2003
W2 Income $12,000

2003
New Pay Schedule

Payment
for December, 2002 $1000 Paid on January 1, 2003

Payment
for January, 2003 $1000 Paid on February 1, 2003

Payment
for February, 2003 $1000 Paid on March 1, 2003

Payment
for March, 2003 $1000 Paid on April 1, 2003

Payment
for April, 2003 $1000 Paid on May 1, 2003

Payment
for May, 2003 $1000 Paid on June 1, 2003

Payment
for June, 2003 $1000 Paid on July 1, 2003

Payment
for July, 2003 $1000 Paid on August 1, 2003

Payment
for August, 2003 $1000 Paid on September 1, 2003*

* (Pay
for 8/2003 is final payment for service provided in Academic Year
2002/03)

Payment
for Aug/Sept (8/16/03-9/15/03) $1000 Paid on September 16, 2003

Payment
for Sept/Oct (09/16/03-10/15/03) $1000 Paid on October 16, 2003

Payment
for Oct/Nov (10/16/03-11/15/03) $1000 Paid on November 16, 2003

Payment
for Nov/Dec (11/15/03-12/16/03) $1000 Paid on December 16, 2003

2003
W2 Income $13,000

UIC
– What to Plan for – W2s

Academic
Employees on 12-Month Appointments

Employees
can anticipate, and plan for, the difference the changes may make
on 2003 taxable income (W2s).

For
illustration, taxable income of $1,000 per month or $12,000 per
year is shown.

If
Current Pay Schedule were to Continue for 2003

Payment
for December, 2002 $1000 Paid on January 1, 2003

Payment
for January, 2003 $1000 Paid on February 1, 2003

Payment
for February, 2003 $1000 Paid on March 1, 2003

Payment
for March, 2003 $1000 Paid on April 1, 2003

Payment
for April, 2003 $1000 Paid on May 1, 2003

Payment
for May, 2003 $1000 Paid on June 1, 2003

Payment
for June, 2003 $1000 Paid on July 1, 2003

Payment
for July, 2003 $1000 Paid on August 1, 2003

Payment
for August, 2003 $1000 Paid on September 1, 2003

Payment
for September, 2003 $1000 Paid on October 1, 2003

Payment
for October, 2003 $1000 Paid on November 1, 2003

Payment
for November, 2003 $1000 Paid on December 1, 2003

2003
W2 Income $12,000

2003
New Pay Schedule

Payment
for December, 2002 $1000 Paid on January 1, 2003

Payment
for January, 2003 $1000 Paid on February 1, 2003

Payment
for February, 2003 $1000 Paid on March 1, 2003

Payment
for March, 2003 $1000 Paid on April 1, 2003

Payment
for April, 2003 $1000 Paid on May 1, 2003

Payment
for May, 2003 $1000 Paid on June 1, 2003

Payment
for June, 2003 $1000 Paid on July 1, 2003

Payment
for July, 2003 $1000 Paid on August 1, 2003

Payment
for August, 2003 $1000 Paid on September 1, 2003

Payment
for Sept (9/1-15/2003) $ 500 Paid on September 16, 2003*

(1/2
Month Payment – September, 2003)*

Payment
for Sept/Oct (9/16/03-10/15/2003) $1000 Paid on October 16, 2003

Payment
for Oct/Nov (10/16/03-11/15/2003) $1000 Paid on November 16, 2003

Payment
for Nov/Dec (11/16/03-12/15/2003) $1000 Paid on December 16, 2003

2003
W2 Income $12,500

UIC
– Pay Schedule for 2004 – W2s

The
charts below show the income and pay dates for calendar year 2004.

For
illustration, taxable income of $1,000 per month or $12,000 per
year is shown.

Academic
Employees on 9/12 Appointments

Payment
for Dec/Jan (12/16/04-1/15/04) $1000 Paid on January 16, 2004

Payment
for Jan/Feb (1/16/04-2/15/04)) $1000 Paid on February 16, 2004

Payment
for Feb/March (2/16/04-3/15/04) $1000 Paid on March 16, 2004

Payment
for March/April (3/16/04-4/15/04) $1000 Paid on April 16, 2004

Payment
for April/May (4/16/04-5/15/04) $1000 Paid on May 16, 2004

Payment
for May/June (5/16/04-6/15/04) $1000 Paid on June 16, 2004

Payment
for June July (6/16/04-7/15/04) $1000 Paid on July 16, 2004

Payment
for July/August (7/16/04-8/15/04)) $1000 Paid on August 16, 2004

Payment
for August/Sept (8/16/04-9/15/04) $1000 Paid on September 16, 2004

Payment
for Sept/Oct (9/16/04-10/15/2004) $1000 Paid on October 16, 2004

Payment
for Oct/Nov (10/16/04-11/15/04) $1000 Paid on November 16, 2004

Payment
for Nov/Dec (11/16/04-12/15/04) $1000 Paid on December 16, 2004

2004
W2 Income $12,000

Academic
Employees on 12-Month Appointments

Payment
for Dec/Jan (12/16/04-1/15/04) $1000 Paid on January 16, 2004

Payment
for Jan/Feb (1/16/04-2/15/04) $1000 Paid on February 16, 2004

Payment
for Feb/March (2/16/04-3/15/04) $1000 Paid on March 16, 2004

Payment
for March/April (3/16/04-4/15/04) $1000 Paid on April 16, 2004

Payment
for April/May (4/16/04-5/15/04) $1000 Paid on May 16, 2004

Payment
for May/June (5/16/04-6/15/04) $1000 Paid on June 16, 2004

Payment
for June July (6/16/04-7/15/04) $1000 Paid on July 16, 2004

Payment
for July/August (7/16/04-8/15/04)) $1000 Paid on August 16, 2004

Payment
for August/Sept (8/16/04-9/15/04) $1000 Paid on September 16, 2004

Payment
for Sept/Oct (9/16/04-10/15/04) $1000 Paid on October 16, 2004

Payment
for Oct/Nov (10/16/04-11/15/04) $1000 Paid on November 16, 2004

Payment
for Nov/Dec (11/16/04-12/15/04) $1000 Paid on December 16, 2004